Early Briefing: Grocery Talks Continue

*Giant and Safeway are still in talks with the United Food and Commercial Workers over a new contract; the old one expires at midnight tonight. The union has been rallying public support, and talks are expected to continue through the weekend.

*Lockheed Martin beat out Boeing to win a $766.2 million contract, called the Joint Tactical Radio System, to replace the radio systems for the Army, Navy, Air Force and Marine troops, giving them one system that transmits video, conversations and other data. The Bethesda-based contractor also won a deal to sell six of its C-130J transport aircraft to India, plus spare parts and logistics support.

*Legg Mason of Baltimore, whose closed-end funds have issued $672 million of auction-rate preferred shares, is exploring options that would allow investors to sell the securities despite the freeze in the market. Closed-end fund used the auction-rate market to finance additional investments in government and corporate bonds, a strategy aimed at boosting returns.